--- title: "Tesla sues California DMV, seeking to clear the stain of \"false advertising\" regarding FSD before the rollout of Robotaxi" type: "News" locale: "en" url: "https://longbridge.com/en/news/276739603.md" description: "Tesla has filed a lawsuit against the California government aimed at overturning the California Department of Motor Vehicles (DMV) ruling regarding its autonomous driving system being accused of \"false advertising.\" Tesla believes the DMV's conclusion lacks factual basis and accuses it of incorrectly labeling it as a \"false advertiser.\" This case stems from a 2021 investigation by the DMV into Tesla's marketing strategies, focusing on whether its product naming misleads consumers. Although Tesla has taken steps to modify descriptions in response to regulatory pressure, it remains dissatisfied with the DMV's ruling" datetime: "2026-02-24T13:15:27.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276739603.md) - [en](https://longbridge.com/en/news/276739603.md) - [zh-HK](https://longbridge.com/zh-HK/news/276739603.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276739603.md) | [繁體中文](https://longbridge.com/zh-HK/news/276739603.md) # Tesla sues California DMV, seeking to clear the stain of "false advertising" regarding FSD before the rollout of Robotaxi According to Zhitong Finance APP, Tesla (TSLA.US) has officially filed a lawsuit against the California state government, aiming to overturn the California Department of Motor Vehicles (DMV)'s previous administrative ruling regarding its autonomous driving system being accused of "false advertising." This years-long regulatory battle has recently escalated, with Tesla asserting in its court filing that the DMV's conclusion that it made misleading statements in marketing "Autopilot" and "Full Self-Driving" (FSD) features is baseless. In a complaint dated February 13, Tesla's lawyers claimed that the DMV "erroneously and unfoundedly" labeled the automaker as a "false advertiser" because the company previously used the terms autopilot and FSD. This lawsuit was initiated two months ago after the California administrative hearing office indicated that the DMV could temporarily revoke the automaker's license to manufacture or sell cars in California. The history of this dispute can be traced back to 2021 when the California DMV launched an in-depth investigation into Tesla's branding strategy, with the core issue being whether its product naming could lead consumers to believe that the vehicles had achieved full autonomous driving. According to a preliminary ruling by the California Office of Administrative Hearings (OAH) at the end of 2025, Tesla's terminology usage was classified as misleading behavior, facing the risk of severe penalties, including suspension of its vehicle sales license in the state. In December, the court ruled in favor of the DMV, determining that the relevant terminology was misleading and recommending the revocation of the license; however, the regulatory agency ultimately reduced the penalties and granted Tesla time to rectify the situation. In response to regulatory pressure, Tesla took a compromise approach in early 2026 by modifying its official descriptions and adding the "Supervised" suffix, successfully passing the DMV's compliance review on February 17, temporarily alleviating the risk of license revocation. However, Tesla clearly does not intend to accept the legal label of "false advertising" and has countered in its latest lawsuit that the company has provided sufficient risk warnings in its user manuals and activation interfaces. According to analysis by Electrek, Tesla's move aims to eliminate potential legal risks, protect its brand reputation, and pave the way for the upcoming commercialization of Robotaxi autonomous driving. Just days before launching this counter-lawsuit, the DMV confirmed that Tesla had complied with an administrative decision from December 2025, which required the company to stop using the term "Autopilot" in its marketing materials in California. It is worth mentioning that this legal action comes at a time when Tesla is transitioning towards autonomous taxi and self-driving sectors. Notably, the company is currently testing a small number of automated vehicles in its autonomous taxi pilot project in Austin. As California is one of Tesla's largest consumer markets globally and has significant industry regulatory demonstration effects, the outcome of this legal counterattack will directly impact compliance standards in the global autonomous driving industry Industry observers point out that if Tesla cannot clear the accusations of "misleading consumers" through legal means, it may trigger a larger-scale consumer class action lawsuit and have a profound impact on the core AI-driven premium in its valuation logic ### Related Stocks - [Tesla, Inc. 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